U3 AOS 2 CH3C Felix

Question 1

Compare the tangibility, production/consumption pattern, storability, production method, production technique, Degree of customer contact, and production technique between goods and services

Answer 1

tangibility=
-Goods=Tangible - can be seen and touched
-services=Usually intangible - cannot be seen or touched

Production/consumption pattern=
-Goods=Production and consumption occur separately
-services=Production and consumption occur simultaneously

Storability=
-Goods=Can be easily stored
-services=Is difficult to store

Production method=
-Goods=Can be standardised and mass produced
-services=Often customised

Degree of customer contact=
-Goods=Minimal customer contact
-services=High degree of customer contact

Production technique=
-Goods=Mainly capital intensive production.
-services=Mainly labour intensive production

Question 2

What aspects do goods and services share in common and both differ in

Answer 2

Both=
-Use technology
-Deal with customers
-Deal with suppliers
-Aim to produce high-quality output
-Aim to reduce the costs of production
-Aim to reduce waste

Goods only=
-Tangible
-Production and consumption occur separately
-Can be easily stored
-can be standardised and mass-produced
-minimal customer contact
-Mainly capital intensive production

Services only=
-Usually intangible
-Production and consumption occur simultaneously
-Is difficult to store
-often customised
-High degree of customer contact
-Mainly labour intensive production